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The council’s audit committee heard on Friday, February 22, that: “the council’s appetite for risk has increased”, and that the new panel was required “to ensure commercial risk taking matches strategic requirements".

The new scrutiny board, known as the Executive Board Companies and Commercial Committee, will meet monthly starting in May, and is expected to be held in public.

Councillor Andrew Rule, who represents the Clifton North Ward for the Conservatives, welcomed the decision.

He said: “I think it’s a step in the right direction, but I would like to see them go further and take councillors off the boards of the individual companies and allow directors to exercise their functions in the day-to-day running of the companies.

“Councillors can then have a scrutiny capacity in the meeting to make sure the businesses are being run within the aims and objectives of the council.

“It’s also important the new committee is politically balanced and that opposition members have voting rights.

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“When there have been reasonable attempts made, particularly with Enviroenergy and Robin Hood Energy, to assess the risk the companies are exposing the council to, at every turn it has been blocked with commercial sensitivity.

“I think the public need to know we are exercising robust scrutiny.”

A spokesman for the council said: “Like many councils facing substantial reductions to our main Government grant, commercialisation is becoming increasingly important, and so while some of our companies are long-established, others have been set up more recently.

“It’s felt that as the council diversifies its commercial interests, it’s important to ensure existing governance arrangements are strengthened.

“It’s proposed to establish a new committee to oversee the governance of these companies. The council is seeking to ensure arrangements are fit for future purpose and continue to protect the council’s interests on behalf of local taxpayers.”